Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
amajewski1104
New Member

Received 1099-C cancellation of debt for credit card for deceased widowed mother (died 11/5/19) this week. Do i need to file a return for this and how do i do it?

my mother was sole person on credit card account.  no probate was opened because she didn't have enough assets.  do we have to pay taxes on this, my mother died over a year ago?  Thank you.
4 Replies
amajewski1104
New Member

Received 1099-C cancellation of debt for credit card for deceased widowed mother (died 11/5/19) this week. Do i need to file a return for this and how do i do it?

I really appreciate the advice, thank you.

HelenC12
Expert Alumni

Received 1099-C cancellation of debt for credit card for deceased widowed mother (died 11/5/19) this week. Do i need to file a return for this and how do i do it?

So sorry for your loss.

 

No, you don't have to pay income taxes on your mother's cancelled debt.

 

Generally, if there was an estate established for her, the cancelled debt would be income to the estate. However, you stated she didn't have enough assets. 

 

Click this link for more info on Cancelled Debt for Deceased Persons.  Source: MarilynG1

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
amajewski1104
New Member

Received 1099-C cancellation of debt for credit card for deceased widowed mother (died 11/5/19) this week. Do i need to file a return for this and how do i do it?

Thank you for your answer.  Do I need to file a return for her to list this 1099-C, or should I just disregard it?  It says it was furnished to the IRS, so not sure what I should do?

ColeenD3
Expert Alumni

Received 1099-C cancellation of debt for credit card for deceased widowed mother (died 11/5/19) this week. Do i need to file a return for this and how do i do it?

In the link in the comment from HelenC12:

 

Considering your xxx passed away in 20xx,...  Therefore, there is not a return to add the income unless there was an estate opened.  If there was no estate or probate opened or the estate was closed, then there is nothing you can add it to. If you want to be cautious you can put "deceased " on it and send to the IRS with a letter or you can address it later if they contact you over it.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v